You are here: Home - Retirement - Retiring now - News -

A third of pension savers plan on using equity release

0
Written by: Samantha Downes
18/02/2022
Over-55s with higher value pensions are more likely to release equity from their home as part of their retirement plans.

Around a third of pension savers plan to release equity from their homes to help fund their retirement, according to Canada Life.

The equity release provider found of those with higher value pensions of more than £200,000, 42% were likely to release equity compared to 27% among those with pensions valued at less than £200,000.

Over-55s on higher incomes of £50,000 or more were increasing likely to release equity as part of their retirement planning compared to those on lower incomes. Some 35% of those on higher incomes expected to do so, compared to 22% of those earning less than £20,000 and 33% of those earning between £20,000 and £50,000.

The research was based on 506 adults in the UK aged 55 and over with a defined contribution pension, who are not yet taking an income.

Alice Watson, head of marketing for insurance at Canada Life, said: “Retirement journeys are becoming more complex. Fewer people are retiring on generous final salary pensions while more people are saving later in life or renting for longer. These demographic changes mean that more people are likely to turn to their property to help them support their retirement aspirations.

 “Modern equity release products have the flexibility and accessibility which families and homeowners are looking for in order to enjoy their hard-earned retirements comfortably. However equity release is a lifelong financial decision so it is essential that people use a reliable release equity calculator, seek quality financial advice and talk through their decision with loved ones before agreeing to a product.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Nationwide to increase instant access regular saver to 5%

Nationwide will increase the interest rate on its Start to Save 2 account to 5% in December.
Nationwide to increase instant access regular saver to 5%

How to get 5% interest without tying up your savings for years

You don't have to lock your money away to get an above-average return on your savings.
How to get 5% interest without tying up your savings for years

Borrowers warned that spray foam could make homes ‘unmortgageable’

More homeowners are installing spray foam insulation to keep bills down as the price of energy soars, but many...
Borrowers warned that spray foam could make homes 'unmortgageable'

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week